Alternatives to a Direct-Sales Force

Even small companies have options -- especially once they pass the $5-million mark. Middling and mammoth businesses alike make heavy use of distributors and wholesalers as another way to reach the marketplace.

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Percentage using . . Manu- Major or National

Company Tele- facturing Distributors/ Account

sales (mil.) marketing Reps Wholesalers Reps

less than $5 34.5% 20.7% 32.8% 5.2%

$5-$25 21.6 52.6 48.5 5.2

$25-$100 24.5 36.7 51.0 12.2

$100-$250 44.0 20.0 48.0 16.0

more than $250 25.0 8.3 58.3 29.2

Source: "Twenty-sixth Survey of Sales Force Compensation," a survey of 250 companies around the United States, 725 with sales less than $50 million. The Dartnell Corp., Chicago, 1990.